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Archive for the ‘NewTaxLaws’ Category

New ObamaCare Taxes

Posted by taxguru on September 17, 2013

A great infographic of many of the new taxes created by the insane ObamCare law.

Click on the thumbnail version below for full size or check out the source page. It’s huge.

  New ObamaCare Taxes photo ObamaCareTaxes_Infographic-700x5592_zpsa9adc47a.jpg

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Bungee Tax Law

Posted by taxguru on January 12, 2013

During today’s weekly TaxCoach meeting, some folks referred to the hastily drafted and passed new tax law as a bungee to catch those falling over the dreaded Fiscal Cliff that our idiot rulers had created.  That description works for me. 

Over the next several days, there will be a lot of interpretations of the new law published.  I plan to post links to as many of the useful ones as I can; so check back to see what has been added to this post. 

TheTaxBook released this three page PDF summary, which was followed up by this longer (36 pages pdf) version.  Interestingly, this summary doesn’t mention the retroactive increase in the maximum Section 179 to $500,000 for 2012 and 2013; but the longer version does cover it.. 

Spidell has a short summary that does mention the higher Sec. 179 limit.

QuickFinder has this 8 page pdf summary of the changes.

CCH has this 12 page pdf briefing.

Journal of Accountancy’s summary: Congress passes fiscal cliff act

TaxProf Paul Caron has extensive coverage, including a link to download the actual 157 page PDF of the legislation, H.R. 8.

The Waller law firm has this 18 page PDF summary organized by code section number.  The Sec 179 increase is listed under Code Section 315.

From the US Senate Committee on Finance:

The American Taxpayer Relief Act - H.R. 8 (157 Pages PDF)
 
Revenue Estimates of The American Taxpayer Relief Act (3 Pages PDF)

Summary of American Taxpayer Relief Act Provisions (19 Pages PDF)

6 Things You Won’t Believe That Are In The Fiscal Cliff Bill That The Senate Passed At 2 AM While Most Americans Were Drunk –  Our corrupt rulers can never resist the temptation to toss in several unrelated measures to any bit of legislation they work on.

 

 

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Posted by taxguru on January 1, 2013

Washington Celebrates Solving Totally Unnecessary Crisis They Created –  And our retarded rulers guaranteed plenty more excitement for 2013, by passing short-term patches that will give us more of these self-created fiscal cliffs.  Modern day Keystone Kops are in charge in DC.

 

Putting America’s Tax Hike In Perspective –  Very illustrative bar graph with the $62 Billion in new annual taxes compared to the $1.089 Trillion budget deficit.  Still, spending cuts are not allowed to be discussed.

 

Fiscal Cliff Deal: $1 in Spending Cuts for Every $41 in Tax Increases –  Spending by our rulers in DC is too sacred to ever consider cutting.

 

Details of tentative deal that would avert fiscal crisis –  At least our imperial rulers in DC have finally agreed on the proper definition of the Evil Rich who need to be punished; $400,000 of income for Singles and $450,000 for Married Couples.  Welcome back to Marriage Penalty Tax Planning.  Two singles living together don’t get hit until at total of $800,000 in income vs only $450,000 if they were married. 

 

Liberalism’s $400,000 Problem -Lefties upset over the higher income limit to define the Evil Rich to be persecuted.

 

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From Tax Update Webinar

Posted by taxguru on December 17, 2012

This year, I intentionally scheduled almost all of my annual 40 hours of CPE for as late in the year as possible, with the hope that some settlement of the open tax issues would be wrapped up by now.  Unfortunately, as we know all too well, nothing has been done by our incompetent rulers in DC and we still have a ton of uncertainty as to what the rules will be for 2012, 2013 and onward. 

Once again, I am using CPE Link for most of my live instruction CPE.  I just finished the first four hour section of the 2012 Tax Update by Vern Hoven and he had to hedge a lot, with warnings that several tax provisions that have technically expired as of 12/31/11 may be extended retroactively for 2012 by the bozos in DC, hopefully before the end of the upcoming Tax Season.

As we went through the manual and slides, I found a few of them that I wanted to share here with my readers.

 

IRS Audit Exposure

This first one is from the IRS’s official report of their examination coverage.  It illustrates that the higher your AGI is, not only will you be hit with higher taxes and lose several deductions and credits, but the bulls-eye on your back for IRS harassment will grow much larger.  Steps to keep your AGI down, such as working with a C corp, make all the more sense.

From Tax Info

    

New ObamaCare Taxes

We covered some of the numerous new taxes created by ObamaCare that we will soon be dealing with.  One of them is a new Hospital Insurance (HI) tax on the wages and self employment income of the evil rich and is summarized nicely in this table.

From Tax Info

 

 

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Posted by taxguru on February 12, 2012

Ten New Tax Laws That May Affect 2011 Return – Just some of the changes that keep taxes a moving target and not something for do-it-yourselfers.

 

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Explanations of some new tax laws

Posted by taxguru on December 19, 2009

From the latest issue of Intuit’s ProConnection newsletter

Quick Tax Relief for Clients with Net Operating Losses. Longer Carryback, Larger Scope

Three Versions of Homebuyer Credit May Confuse Clients  – On a related note, the folks at Jennings Seminars have a handy table of the different applications of the homebuyer’s credits available for download.

New Law Mandates Electronic Filing by Return Preparers If Filing Ten or More Returns – As a stubborn hold-out on e-filing so that I can attach a lot of explanatory details to tax returns, this was something I was not happy to see.  I will be investigating the penalties for not complying with  this request and will most likely continue to only prepare paper tax returns. The Bob Jennings seminar speaker a few weeks ago mentioned that e-filing is going to allow attachments of pdf pages in the next few years, so that may be what I need to be able to attach all of the self defense documents that I like to include with tax returns.  Until that is possible, I will continue to refuse to e-file.

 

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Posted by taxguru on June 25, 2009

22 Tax Breaks That Expire in 2009 – Handy recap from Intuit of many of the tax law changes that are currently scheduled for the end of this year.  As we have seen quite often in the past few years, this is subject to change at the whim of our rulers in DC. 

 

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Tax Provisions In Porkulus Bill

Posted by taxguru on February 17, 2009

Just as none of our rulers in DC had the time to actually read the humongous 1,000 plus page spending bill before voting on it, none of us in the tax profession have time to slog through it. The first summary of the tax provisions I have come across is this five page one from ClientWhys.

Here are some of the provisions about which I have received the most questions over the past few months:

Vehicle 50% Bonus Depreciation – Some years ago, to prevent higher-income taxpayers from creating large tax writes-offs from expensive vehicles, Congress implemented the “Luxury Auto Limitations,” which places a cap on first-year depreciation. The provision that extends the 50% first-year bonus depreciation to 2009 purchases (mentioned elsewhere in this article) also extends the increased dollar cap for new vehicles placed in service in 2009 by $8,000. The regular luxury auto depreciation caps for 2009 have not yet been announced by the IRS. For 2008, the regular cap was $2,960 but was increased to $10,960 when the 50% bonus depreciation was claimed. The 2009 amount will likely be similar.

Bonus Depreciation Extended - Businesses are allowed to recover the cost of capital expenditures over time according to a depreciation schedule. Last year, Congress temporarily allowed businesses to recover the costs of capital expenditures made in 2008 faster than the ordinary depreciation schedule would allow, by permitting these businesses to immediately write-off 50% of the cost of depreciable property (e.g., equipment, tractors, wind turbines, solar panels, and computers) acquired in 2008 for use in the United States. This temporary provision has been extended through 2009.

Extension of Enhanced Small Business Expensing – In order to help small businesses quickly recover the cost of certain capital expenses, small business taxpayers may elect to write-off the cost of these expenses in the year of acquisition in lieu of recovering these costs over time through depreciation. This is commonly referred to as the Sec. 179 deduction. Until the end of 2010, small business taxpayers are allowed to write-off up to $125,000 (indexed for inflation) of capital expenditures subject to a phase out once capital expenditures exceed $500,000 (indexed for inflation). Last year, Congress temporarily increased the amount that small businesses could write-off for capital expenditures incurred in 2008 to $250,000, and increased the phase-out threshold for 2008 to $800,000. Those increased amounts have been extended to 2009.

 

I’m sure more such summaries will be published over the next few weeks. I will post links to those as I learn about them.

 

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Posted by taxguru on November 21, 2008

From the latest Intuit ProConnection newsletter:

New Law Extends and Expands Tax Breaks for Individuals and Businesses

New Law Improves Odds in Preparer Penalty Game

 

 

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Posted by taxguru on October 10, 2008

Emergency Economic Stabilization Act of 2008 – The folks at The TaxBook have been hard at work preparing an excellent 24+ page pdf summary of the new tax law that is a lot easier to cope with than the 451 pages of the actual law.

 

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